Market outlook for EDA in aerospace and defense sectorThe global EDA in the aerospace and defense
sector has started to grow at a faster rate due to the rising demand for
semiconductor chips. Publisher's market research analysts predict steady market
growth with a CAGR of around 8% from 2015 to 2019.

ESL tools are expected to grow at a faster rate compared to
other segments in CAE. The major reason behind this growth is the system-level
approach of the tools that enables users to design, verify, and simulate
simultaneously at lower costs and in less time. RTL tools enable end-users to
verify logic designs using one or more RTL languages and give an abstract of
the complex circuit diagram.

Reduction in design time with EDAAerospace and defense manufacturers have
increased their adoption of EDA to reduce design time, error and cost. For
instance, Bell Helicopter adopted Mentor Graphics Capital product family to
streamline the wiring design process for their Bell 525 Relentless program. The
company used Capital Suite, which is an advanced electrical system and wire
harness design software suite. With the adoption of Capital Suite, the company
was able to reduce the time taken in electrical system integration by
eliminating prototypes.

The company adopted Mentor capital logic,
Capital Integrator, and Autoview software, along with applications of CATIA V6
MCAD integration. With the adoption of this software, the company has improved
the relentless electrical system design process of Bell 525.

The EMEA accounted for the second largest market
with close to 29% of shares in 2014. Germany and France are the leading revenue
contributors for the EDA market in the aerospace and defense industry in EMEA.

With several initiatives undertaken by the
governments of countries in the APAC to boost their respective aerospace and
defense industries, the region is expected to record the highest CAGR during
the forecast period.